Bonds have certainly seen wild action recently:
The 10 year US Treasury note yielded 1.29% last August. It now yields 2.9%. That’s more than a doubling.
30 year fixed mortgage rates in the US averaged 2.77% last August. They’re now over 5%.
Many yield curves inverted last month. That’s one of the most dependable predictors we have of coming recession.
The Wall Street Journal reports that the quarter that just ended was the worst quarter for bonds in more than 40 years.
So, what is this “trouble in the bond market” telling us?
To find out, we brought back analyst & investor Bill Fleckenstein to decipher the recent action.
Spoiler alert: he thinks the worst is still ahead for bonds.
To learn why & what that will mean for the markets at large, watch this new interview with Bill Fleckenstein.